For MTC, a Middle-Eastern/African mobile giant already operating in 19 markets, the auction is the latest chapter in its bid to become a global player with 30 million users by 2011, up from 14.4 million at the end of last year.

MTC will spend three years in each of three phases of development through regional, international and global expansion.

A Dubai-based analyst covering MTC said it was on the verge of entering the third stage, after successfully acquiring Celtel last year, which brought MTC into the much-coveted African market.

Apart from bidding for Millicom in competition with China Mobile, MTC is also looking to bid for the third mobile licence in Egypt. It has also reached an agreement to buy V-mobile in Nigeria through Celtel for US$1 billion.

With Millicom also having operations in South American markets, the analyst expressed surprise that MTC would make a foray so far from its home base, especially since South America is already dominated by major players such as America Movil and Telefonica.

'MTC's focus is in the Arab world,' the analyst said. 'If [MTC] buys Millicom in full it would be a bit of a surprise as Latin America is a difficult market. If they do enter South America, I expect them to do it in partnership with either a local player or a Chinese player.'

Duncan Clark, managing director at consultancy BDA, also raised the possibility for China Mobile - if it won its bid for Millicom - to reach agreement with other operators to 'break up' Millicom and sell parts of the company.

As Millicom now operates only in two markets in South America - Paraguay and Bolivia - the auction winner would have to be content with beginning as a relatively small player in the vast continent.